Balderosa, Jenaline D.

ACTCY21S2

ASSIGNMENT NO.4 – KINDS OF OBLIGATIONS

1. What are the classifications of obligation?

2. Enumerate and explain each kind of obligation.
3. Give example for each.

Classifications of obligations.
1. Primary classification of obligations under the Civil Code:
a.) Pure and conditional obligations (Arts.1179-1192)
Pure Obligation – one which is not subject to any condition and no specific date is mentioned
for its fulfillment and is, therefore, immediately demandable. (De Leon, 2014)
- One without term or condition and is demandable at once. (Soriano, 2016)
Example:
 I promise to give you P5,000,000.
 I promise to give you a gold necklace.

Conditional Obligation – is one whose consequences are subjects in one way or another to
the fulfillment of a condition.
Condition – is a future and uncertain event, upon the happerning of which, the effectivity or
extinguishment of an obligation (or right) subject to it depends.
Characteristics of a condition:
a. Future and uncertain
b. Past but unknown
Take note: a condition must be possible.
Two Principal Kinds of Condition:
a. Suspensive condition – or one fulfillment of which will give rise to an obligation (or
right). In other words, the demandability of the obligation is suspended until the
happening of the uncertain event which constitutes the condition.
Take note: no fulfillment, no obligation
Example: Mr. Domingo will give his land in Makati to her daughter, Mila, if she
finished her degree in Business Administration.
b. Resolutory condition- or one fulfillment of which will extinguish an obligation (or right)
already existing.
Take note: fulfillment of condition, extinguishment of obligation
Example: I will let you use my apartment in Quezon City until you finished taking your
board examinations that will happen this May 2020.

Article 1180 – When the debtor binds himself to pay when his means permit to do so, the
obligation shall be deemed to be one with a period, subject to the provisions of article 1197.
Period – is a future and certain event upon the arrival of which the obligation subject to either
arises or is extinguished.
Example: I will pay you my debt in partial payments.

Other Kinds of Condition:

Potestative, Casual, and Mixed
1. Potestative – a condition that depends upon the will
2. Casual – a condition that depends upon chance or upon the will of a third person.
3. Mixed – a condition that depends partly upon the will of one of the parties and partly
upon chance or upon the will of a third person.
Possible and Impossible
1. Possible – one that capable of fulfillment in its nature and by law.
2. Impossible – one that is not capable of fulfillment in its nature, such as “if you can swim
across the Pacific Ocean”
Positive and Negative
1. Positive – this is a condition that some event happen at a determinate time.Here, the
obligation is extinguished as soon as the time expires or it has become indubitable that
the event will not take place.
2. Negative – this is a condition that some event will not happen at a determinate time.
Here, the obligation becomes effective as soon as the time indicated has elapsed or it
has become evident that the event will not occur.
Divisible and Indivisible
1. Divisible – one that is capable of partial performance
2. Indivisible – one the is not capable of partial performance by its nature or by law or
agreement of the parties.

b.) Obligations with a period (Arts.1193 – 1198)

Obligations with a period:
1. Concept, - An obligation with a period is one whose demandability or extinguishment is
subjected to the expiration of the term which must necessarily come. In other words, there is a
day certain when the obligation will arise or cease.
2. Examples:
a. Danilo obliged himself to deliver a car to his friend on May 21, 2017. On May 21, 2017, the
obligation will become demandable by reason of expiration of the term or period.
b. Maya allowed Laura to use her LV bag in an event. After the event, Laura is obliged to return
the bag to Maya.
3. Kinds of Period:
1. Ex die (Latin word for “from a certain day”) – this is a period with a suspensive effect. Here,
the obligation becomes demandable upon the lapse of the period.
2. In diem (Latin word for, “until a certain day”) – this is a period with a resolutory effect. Here,
there obligation is demandable at once but is extinguished upon the lapse of the period.
Other kinds are:
a. Legal - a period fixed by law
b. Voluntary – fixed by paries
c. Judicial – fixed by the court
 - If the obligation does not fix a period, but from its nature and circumstances it
can be inferred that a period was intended
- When the duration of the period depends upon the will of the debtor
Take Note: Period is for the benefit of one of the parties

When the debtor losses his right to make use of the period. If it is for his benefit; (Art
1198) i.e., creditor may demand immediate payment.
1. When he becomes insolvent, unless he gives a guaranty or security for the debt.
2. When he fails to furnish the guaranties or securities that he has promised
3. When he impairs the said guaranties or securities by his own acts, or when through a
fortuitous event they disappear, unless he gives new ones equally satisfactory
4. When he violates any undertaking in consideration of which the creditor agreed to the
period.
5. When he attempts to abscond or escape.

c.) Alternartive (Arts. 1199-1205) and Facultative obligations (Art.1206)

1. Kinds of obligations according to the number of prestations
a. Simple – one where there is only one prestation
b. Compound – one where there are several prestations
b.1 Conjunctive – several prestations are due but all must be performed.
Example: Joshua is obliged to give a specific ring, specific watch, specific car to
Charlie on October 2, 2020.
b.2 Distributive or disjunctive – either be alternative or facultative
Alternative Obligation – is one where several prestations are due but the complete
performance of one of them is sufficient to extinguish the obligation
Example:Same example from above, but Joshua may just choose one either the ring, watch or
car to extinguish his obligation.

Take note: the right of choice belongs to the debtor unless it has been expressly given to the
creditor.

Facultative Obligation – an obligation where only one prestation is due but the debtor may
render another in substitution.
Example: Danilo is obliged to give a specific watch to Max with the agreement that Danilo may
deliver a specific ring as a substitution.

d.) Joint and solidary obligations (Arts.1207-1222)

Joint Obligation - each debtor is liable only for a proportionate part of the debt, and each
creditor is entitled only to a proportionate part of the credit
Take note: the creditor cannot compel the other joint debtor/debtors to pay for the portion
unpaid by the other debtor due to insolvency for example.
Example: Mercy and Percy are jointly liable to Henry of P50,000. Mercy is only liable for
P30,000 and Percy is only liable for P20,000. When Percy becomes insolvent, Henry cannot
compel Mercy to pay for Percy’s portion.
Solidary Obligation – each debtor is liable for the whole obligation, and each creditor is entitled
to demand payment of the whole obligation.
Kinds of Solidary Obligations:
1. Passive Solidarity – this is solidarity on the part of the debtors.
Example: Marga and Cassie, solidary debtors are indebted to Kristoff for P5,000,000. Kristoff
can demand payment from either Marga or Cassie. If Marga pays Kristoff P5,000,000, the
obligation is extinguished. Marga can demand reimbursement of P2,500,000 from Cassie
representing the latter’s share.
2. Active Solidarity – this is solidarity on the part of the creditors.
Example: Mia owes Lance and Dan, solidary creditors P8,000,000. Either Lance or Dan may
demand payment of P8,000,000 from Mia. If Mia pays Lance P8,000,000, the obligation is
extinguished. Lance must give P4,000,000 to Dan representing the latter’s share.
3. Mixed Solidarity or solidarity on the part of both debtors and creditors.
Example: Marga and Cassie, solidary debtors, owe Lance and Dan solidary creditors,
P12,000,000. Lance or Dan may collect from Marga or Cassie the total sum of P12,000,000. If
Marga pays Lance P12,000,000, the obligation is extinguished. Cassie must reimburse Marga
P6,000,0000. On the other hand, Lance must give P6,000,000 to Dan.

e.) Divisible and indivisible obligations (Arts.1223-1225)

Divisible Obligation:
Meaning of Divisible Obligation (Art.1223)
- “Divisible Obligation is one the object of which, in its delivery or performance,
is capable of partial fulfillment.”
Kinds of Division
a. Qualitative division – or one based on quality, not on number or quantity of the things
which are the object of obligation.
Example: Mr. Pumanaw Na left a will devising his house and lot in Makati to his son
Miguel, his apartment in Cainta to his daughter Merlinda, and his rest house in
Baguio to his youngest son, Michael.
b. Quantitative division – or one based on quantity rather than quality
Example: Albert and Rachel inherited the a rice field measuring 2 hectares. They
divided the rice field into two equal parts.
Obligations deemed divisible
a. Obligations which have for their object the execution of a certain number of days of work
a. Example: Alvin contracted to finish painting the bathroom of Marco’s house within
3 days.
b. Obligations which have for their object the accomplishment of work by metrical units
a. Example: Leo is obliged to make a cabinet, 3 meters wide and 6 meters long.
c. Obligations which by their nature are susceptible of partial performance.
a. Example: Lisa promised to pay her loan to Kyle amounting to P20,000 within 3
months.
Divisibility in obligations not to do.
 Example: Maharlika Co. is obliged not to sell their products during Holidays and
weekends.
Indivisible Obligation: (Title I Obligations, Section 5, Art.1223-Art.1224)
Meaning of Indivisible obligation. (Article 1223)
 “An indivisible obligation is one object of which, in its delivery or performance, is
not capable or susceptible of partial fulfillment.”
 The contorolling cirscumstance in determining whether an obligation is divisible
or not is the purpose of the obligation or the intention of the partie and if the
object is physically indivisible or the service cannot be performed partially, the
obligation is ALWAYS indivisible. Basic examples for this are: cellphone, car,
washing machine and TV – these things based on its functionality cannot be
divided because it will not function or work its purpose if some part of it is
missing.
 In other words, indivisible obligation must be fulfilled in full based on:
- Its physical state
- Stipulation or agreement of parties and,
- By provision of law
Kinds of Indivisibility:
a. Legal Indivisibility – where specific provision of law declares as indivisible,
obligations which, by their nature, are divisible (Art.1255, par.3)

Take note: The LAW requires the obligation to be indivisible regardless whether the
object is divisible or not.

b. Conventional Indivisibility – where the will of the parties makes as indivisible,

obligations which, by their nature, are divisible

Take note: The obligation is deemed indivisible due to parties discretion, intention or
agreement.

Example: Leah borrowed P20,000 from Sarah and agreed to pay the full amount
including the interest of 5% on September 15, 2020.
Explanation: Even though money is divisible, the payment of debt should still be paid in
full on a certain date because what has been agreed upon by both parties should be
followed. In business parlance, this mode of payment is called lump sum.

c. Natural Indivisibility – where the nature of the object or prestation does not admit of
division.
Take note: When an object is physically indivisible, the obligation is automatically
indivisible and this rule is absolute.

Example: Paul owns a BMW car and he sold it to Brian for P2,000,000. He should
deliver the whole car on August 12, 2020.
 Explanation: Naturally, the car is indivisible therefore it is needless to say that the
obligation is indivisible.

Where there is only one creditor and one debtor

The provisions of Chapter 2, Title 1, regarding the “Nature and Effect of Obligations” in
general (Arts.1163 to 1178) are also to divisible or indivisible obligations. They contemplate
obligations involving only one (1) creditor and only one (1) debtor.
Since divisibility or indivisibility refers to the object or prestation, it does not alter or modify
said provisions. When there is one creditor and one debtor, the latter has to perform the
obligation in its totality, whether or not the prestation is divisible. Unless there is an
express stipulation to that effect, says:
- The creditor cannot be compelled partially to receive the prestations in which
the obligations consists; and
- In accordance with Article 1232, an obligation is not deemed paid unless the
thing or service which the obligation consists has been completely delivered
or rendered, as the case may be.

Explanation:
In other words, the idea of indivisibility is not only attached to the prestation or object itself but
also with the nature of fulfillment of such obligation between one creditor and one debtor which
needs to be performed or delivered in its totality regardless the object is divisible or not.

Article 1224. A joint indivisible obligation gives rise to indemnity for damages from the
time anyone of the debtors does not comply with his undertaking. The debtors who may
have been ready to fulfill their promises shall not contribute to the indemnity beyond the
corresponding portion of the price of the thing or the value of the service in which the
obligation consists.

Effect of non-compliance by a debtor in a joint indivisible obligation.

Example: Luis and Marc are joint debtors of Raul to the amount of P20,000. In here, Raul can
only demand P10,000 from Luis and P10,000 from Marc. If Luis become insolvent then, Raul
cannot compel Marc to pay for Luis’ part because he is willing to fulfill his portion of their debt.

Additional:
Some features of joint liability:
a. Insolvency of one debtor does not make the others liable.
b. Vitiated consent on the part of one debtor does not effect the others
c. Demand made to one of the debtors is not a demand to all because the debt of one is
distinct from the others.
d. When the creditor interrupts the running of the prescriptive period by demanding
judicially from one, the otheres are not affected (Agoncillio and Marino vs. Javier, 38
Phil.424)
e. Defenses of one debtor are not necessarily available to the others. (8 Manresa 200-201)
Solidary Indivisible Obligation - If the obligation is solidary and indivisible, every debtor is
liable for losses and damages, even those ready to perform. They can later recover the entire
amount of damages from the guilty one. (Dizon, 2017)

Example:
Luis and Marc are solidary debtors of Raul to the amount of P20,000. In here, Raul can
demand payment from either of them. If Luis become insolvent then, Marc is liable for
payment of P20,000 to Raul.

Article 1225
Obligations deemed indivisible:
1. Obligations to give definite things
2. Obligations which are not susceptible of partial performance
3. Obligations provided by law to be indivisible even if the thing or service is physically
divisible
4. Obligations intended by the parties to be indivisible even if the thing is physically
dividsible.
Indivisibility in obligations not to do (negative):
Example: Mr. Tamayo obliged himself to not give his son additional allowance for 1 month.

f.) Obligations with a penal clause. (Arts. 1226-1230)

Meaning of principal and accessory obligations
a. Principal obligation – is one which can stand by itself and does not depend for its
validity and existence upon another obligation.
b. Accessory obligation – is one which is attached to a principal obligation and,
therefore, cannot stand alone
Meaning of obligation with a penal clause
- “Is one which contains an accessory undertaking to pay a previously
stipulated indemnity in case of breach of the principal prestation, intended
primarily to induce its fulfillment.”
Rule in case obligation has a penal clause
General Rule: The penalty takes the place of the damages and interest in case of non-
compliance
Exceptions, i.e., aside from the penalty, damages and interest may also be demanded:
1. When there is a stipulation to that effect
2. When the debtor refuses to pay the penalty
3. When the debtor is guilty of fraud in the performance of the obligation

Purposes of penal clause

a. To insure their performance by creating an effective deterrent against breach,
making the consequences of such breach as onerous as it may be possible.
 b. To substittute a penalty for the indemnity for damages and the payment of interests
in case of non-compliance or to punish the debtor for non-compliance or violation of
his obligation.

Kinds of penal clause:

1.) As to its origin:
a. Legal penal clause – when it is provided by law and,
b. Conventional penal clause – when it is provided for by stipulation of the parties
2.) As to its purpose:
a. Compensatory penal clause – when the penalty take place of damages, and
b. Punitive penal clause – when the penalty is imposed merely as punishment of
breach
3.) As to its demandability or effect:
a. Subsidiary or alternative penal clause – when only the penalty can be enforced
b. Joint or cumulative penal clause – when both the principal obligation and the
penal clause can be enforced.

When the court may reduce penalty

1. When the obligation has been partly complied with by the debtor.
2. When the obligation has been irregularly complied with by the debtor
3. When the penalty is iniquitous or unconscionable even if there has been
no performance

Effect of nullity of principal obligation, penal clause

 The nullity of the principal obligation carries with it the nullity of the penal clause. This is
so because the penal clause, being just an accessory undertaking, cannot stand itself.
 The nullity of the penal clause does not carry with it that of the principal obligation. This
is so because the principal obligation can stand by itself.

EXAMPLE: Migz Baldomero, engineer entereed into a contract with Senator Cynthia Villar
to build a condominium building in Pasig City. Under their agreement, Migz Baldomero
should complete the project in 2 years. Otherwise, Migz Baldomero will pay Senator Villar a
penalty of P1 million for every 2 months of delay in the project.

2. Secondary classification of obligations under the Civil Code:

a.) Unilateral and bilateral obligations (Arts.1169-1191)
b.) Real and personal obligations (Arts.1163-1168)
c.) Determinate and generic obligations (Art.1165)
d.) Civil and natural obligations (Art.1423)
e.) Legal, conventional and penal obligations. (Arts 1157,1159,1161)